CAG vs WMT

Conagra Brands, Inc.

(CAG) offers the better valuation at 5. 8x trailing P/E (8. 2x forward), making it the more compelling value choice. Analysts rate Walmart Inc. (WMT) a "Buy" — based on 64 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Conagra Brands, Inc.

(CAG) is the cheapest at 5. 8x versus Walmart Inc. at 47. 9x. On forward P/E, Conagra Brands, Inc. is actually cheaper at 8. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Conagra Brands, Inc. wins at 1. 18x versus Walmart Inc. 's 4. 08x — a reasonable growth-adjusted valuation.

Over the past 5 years, Walmart Inc.

(WMT) delivered a total return of +187. 7%, compared to -45. 0% for Conagra Brands, Inc. (CAG). Over 10 years, the gap is even starker: WMT returned +517. 6% versus CAG's -27. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Conagra Brands, Inc.

(CAG) is the lower-risk stock at 0. 06β versus Walmart Inc. 's 0. 12β — meaning WMT is approximately 89% more volatile than CAG relative to the S&P 500. On balance sheet safety, Walmart Inc. (WMT) carries a lower debt/equity ratio of 67% versus 93% for Conagra Brands, Inc. — giving it more financial flexibility in a downturn.

On earnings-per-share growth, the picture is similar: Walmart Inc.

grew EPS 13. 3% year-over-year, compared to 0. 0% for Conagra Brands, Inc.. Over a 3-year CAGR, WMT leads at 5. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Conagra Brands, Inc.

(CAG) is the more profitable company, earning 9. 9% net margin versus 3. 1% for Walmart Inc. — meaning it keeps 9. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CAG leads at 11. 8% versus 4. 2% for WMT. At the gross margin level — before operating expenses — CAG leads at 25. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Conagra Brands, Inc. (CAG) is the more undervalued stock at a PEG of 1. 18x versus Walmart Inc. 's 4. 08x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Conagra Brands, Inc. (CAG) trades at 8. 2x forward P/E versus 44. 9x for Walmart Inc. — 36. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CAG: 25. 4% to $17. 55.

All stocks in this comparison pay dividends.

Conagra Brands, Inc. (CAG) offers the highest yield at 10. 0%, versus 0. 7% for Walmart Inc. (WMT).

For long-horizon retirement investors, Walmart Inc.

(WMT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 12), 0. 7% yield, +517. 6% 10Y return). Both have compounded well over 10 years (WMT: +517. 6%, CAG: -27. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: CAG is a small-cap deep-value stock; WMT is a mega-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.